It's Unlikely That DATA Communications Management Corp.'s (TSE:DCM) CEO Will See A Huge Pay Rise This Year
Key Insights
- DATA Communications Management will host its Annual General Meeting on 22nd of May
- Salary of CA$600.0k is part of CEO Richard Kellam's total remuneration
- The overall pay is 150% above the industry average
- DATA Communications Management's total shareholder return over the past three years was 66% while its EPS grew by 18% over the past three years
CEO Richard Kellam has done a decent job of delivering relatively good performance at DATA Communications Management Corp. (TSE:DCM) recently. As shareholders go into the upcoming AGM on 22nd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for DATA Communications Management
Comparing DATA Communications Management Corp.'s CEO Compensation With The Industry
According to our data, DATA Communications Management Corp. has a market capitalization of CA$111m, and paid its CEO total annual compensation worth CA$1.4m over the year to December 2024. Notably, that's a decrease of 18% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$600k.
On comparing similar-sized companies in the Canadian Commercial Services industry with market capitalizations below CA$280m, we found that the median total CEO compensation was CA$550k. Hence, we can conclude that Richard Kellam is remunerated higher than the industry median. Moreover, Richard Kellam also holds CA$1.5m worth of DATA Communications Management stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CA$600k | CA$600k | 44% |
| Other | CA$772k | CA$1.1m | 56% |
| Total Compensation | CA$1.4m | CA$1.7m | 100% |
On an industry level, roughly 40% of total compensation represents salary and 60% is other remuneration. Although there is a difference in how total compensation is set, DATA Communications Management more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
DATA Communications Management Corp.'s Growth
DATA Communications Management Corp.'s earnings per share (EPS) grew 18% per year over the last three years. In the last year, its revenue is down 5.3%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has DATA Communications Management Corp. Been A Good Investment?
Most shareholders would probably be pleased with DATA Communications Management Corp. for providing a total return of 66% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for DATA Communications Management (1 doesn't sit too well with us!) that you should be aware of before investing here.
Important note: DATA Communications Management is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.